Optical/IP Networks

DT Has a Dream…

9:00 AM -- The top brass at Deutsche Telekom AG (NYSE: DT), headed by under-pressure CEO Kai Uwe Ricke, have been busy cooking up a response to the German giant's current woes.

Why? Because shareholders are (understandably) nervous following a €600 million ($772 million) adjustment in revenue guidance and a regulatory right hook from the European Commission. (See Deutsche Telekom Reports H1 and Achtung! Regulators Force DT to Share.)

The resulting dish of initiatives is much more of an appetizer than a meaty main dish, though. (See DT Outlines 'Telekom 2010'.)

Basically it amounts to: We've shuffled around some responsibilities; we're aiming to be really strong in important markets; and we're hoping to make more money.

Radical stuff, eh?

And holding a board meeting on a Saturday to decide the final plan of action isn't going to impress anyone.

By naming the new plan "Telekom 2010," Ricke has given himself and his two main lieutenants -- T-Systems International GmbH CEO Lothar Pauly and T-Mobile International AG CEO Rene Obermann -- three years to live up to the new expectations. Let's see if he lasts that long.

— Ray Le Maistre, EuroBlögger, Light Reading

Be the first to post a comment regarding this story.
Sign In